Glossary

How much do you know about sustainability?

Find in our GLOSSARY all the terms, concepts and ideas that encompass sustainability.

Decarbonization

Decarbonization is not the opposite of carbonization, a verb related to coal, but refers to the process by which countries or other entities try to achieve a low-carbon economy, or by which people try to reduce their carbon consumption.

Due Diligence

Human rights and environmental due diligence is the process by which companies take all necessary and effective measures to identify, prevent, mitigate, account for and respond to the actual or potential negative impacts of their own activities or those of their value chain. This includes subsidiaries, subcontractors, suppliers and other economic relationships, in the state of origin or in third countries.

Fountain: www.fundeu.es

ESG

ESG stands for Environmental, Social and Governance.
Why are they important? Because the criteria based on these three areas represent the non-financial aspects of a company and are a good indicator of its performance in terms of sustainability.

Greenwashing

Greenwashing could be understood as the advertising strategy used by certain companies to present themselves and their products as environmentally friendly entities, without being so. The main objective of these companies is, on the one hand, to hide their real practices (more harmful to nature) and, on the other, to take advantage of the popularity of everything classified as 'green', both at the business and brand level.

Stakeholders:

Individuals or groups affected by an organization's actions. They can be classified into two categories: primary and secondary. Primary stakeholders are those without which organizations would not exist, such as shareholders and investors, board members, employees and collaborators, consumers, suppliers, and local communities. Secondary stakeholders include unions, competitors, public authorities and regulatory bodies, the media, non-governmental organizations (NGOs), etc. This concept was coined by Freeman in 1984 as an essential element of a company's strategic planning.

Sustainability Report:

Report prepared by companies to disclose the non-financial results of their business management in the economic, social, and environmental spheres. It includes information on their activities and their impacts in all three areas during the reporting period. It is a tool for transparency, intended to inform and communicate to the company's stakeholders about its impact on employees, customers, suppliers, the community, and the environment, and to encourage dialogue between both parties.

Socially responsible investment:

One in which investment decisions, in addition to taking into account traditional investment criteria (profitability, liquidity and risk),
It takes into account the economic, social and environmental impacts of the companies in which the money is invested.

Glossary

How much do you know about sustainability?

Decarbonization

Due Diligence

ESG

Greenwashing

Stakeholders:

Sustainability Report:

Socially responsible investment:

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